Volkswagen said its executive and nomination meetings supported the proposal. The decision will have to be approved by the full supervisory board and then voted on at an extraordinary shareholder meeting in November.

Evercore ISI's global automotive research head, Arndt Ellinghorst, welcomed the move. Poetsch is "well respected" in the financial community and has a "clear understanding" of the key financial problems that the VW Group is facing, Ellinghorst said in an emailed statement. These include high capital and r&d spending, along with high labor and material costs, he said.

VW CEO Martin Winterkorn, once considered a candidate for the chairman role, is set to have his contract as CEO extended until 2018 from 2016 at a supervisory board meeting on Sept. 25.

The automaker has been seeking a new chairman since Piech quit in April after losing a showdown over strategy he had provoked with Winterkorn.

Piech is a member of the supervisory board of Porsche SE, which owns 51 percent of Volkswagen.

Poetsch is seen as a safe choice who will not polarize the power players at Volkswagen, but one investor criticized his shift from day-to-day management to an oversight role without a break.

“While we very much respect Mr. Poetsch as CFO, we are against his direct transition to the head of the supervisory board,” Ingo Speich, a fund manager at Union Investment, said via an email. “A supervisory board chairman needs critical distance; that’s not possible without a cooling-off period.”

Volkswagen said a successor for Poetsch as CFO will be decided soon. Rupert Stadler, head of the Audi brand, could be a candidate for that post.

Bloomberg and Reuters contributed to this report

VW press statement

Hans Dieter Pötsch nominated for appointment as new Chairman of Supervisory Board of Volkswagen Aktiengesellschaft

Wolfsburg, September 3, 2015 – The Executive and Nomination Committees of the Supervisory Board of Volkswagen AG decided in a meeting today to support the proposal made by the shareholder representatives of the Supervisory Board of Porsche Automobil Holding SE that Mr Hans Dieter Pötsch be elected to the Supervisory Board of Volkswagen AG at an Extraordinary General Meeting of VW in November this year.

“We are confident that Pötsch is the right candidate for the position of Chairman of the Supervisory Board in future. Mr Pötsch is characterised by strategic vision, comprehensive knowledge of the automotive industry and considerable expertise in the financial markets", said the Deputy Chairman of the Supervisory Board, Berthold Huber.

At the request of the shareholder representatives, the Supervisory Board of Porsche Automobil Holding SE will now adopt a resolution regarding the proposal that Mr Pötsch be elected to the Supervisory Board during an Extraordinary General Meeting in November. As soon as this formal resolution has been received by the Supervisory Board of Volkswagen AG, the Supervisory Board of Volkswagen AG will decide on the date of the Extraordinary General Meeting and the termination of Mr Pötsch’s term of office on the Board of Management to coincide with his election to the Supervisory Board.

The Executive Committee and the Nomination Committee also decided today to propose that not only Mr Pötsch but also Dr Louise Kiesling be elected to the Supervisory Board by the Extraordinary General Meeting. “Dr Kiesling has the full support of the Executive Committee”, Berthold Huber affirmed. Dr Kiesling is currently a member of the Supervisory Board by virtue of a court appointment. An election must therefore be conducted at the General Meeting following this court appointment.

The Executive Committee thanked Ms Julia Kuhn-Piëch for her contribution to the Supervisory Board. “In the interest of the Group, we will continue to avail of Ms Kuhn- Piëch’s valuable expertise,” commented Professor Martin Winterkorn, Chairman of the Board of Management of Volkswagen AG.

The Supervisory Board will decide on a successor for Mr Pötsch without delay. “The Executive Committee will begin deliberations on a possible successor immediately. It is important that we reach an informed decision, in which the entire Supervisory Board is involved. When deciding on a successor, we will act with the diligence required, particularly in view of the fact that Mr Pötsch will continue to perform his duties with his usual commitment until November. The Supervisory Board will ensure the continued management of the Volkswagen Group and an appropriate transition to the successor.”